The federal government continues to support Tasmania's controversial pulp mill development with Prime Minister Julia Gillard saying the project is ready for another firm to step in.
The project was being pursued by timber group Gunns, but the company last month went into administration after it failed to secure funds to keep operating.
'We continue to support a pulp mill project in this state,' Ms Gillard told reporters in Launceston on Wednesday.
'Everything we need to do in terms of environmental approvals has been done.
'So it is available for a new investor to come onto the scene and pick up where Gunns has left off and to develop the pulp mill.'
Gunns' administrators say a number of factors contributed to the company's demise, including oversupply in the woodchip market, a high Australian dollar and the considerable money spent on developing the proposed $2.3 billion pulp mill at Bell Bay.
'But we are supportive of the pulp mill and everything we need to do for the pulp mill to become a reality has been done,' Ms Gillard said.